Validation and Verification of CDM Projects

1
Validation and Verification of CDM Projects

• Climate Change Kiosk on CDM/DNA, COP9
• December 6, 2003
• Marco van der Linden
• SGS Climate Change Programme

2
Contents of presentation

• Introduction to DOEs
• Brief introduction to SGS
• Input of DOE in the CDM project cycle
• Validation of CDM projects
• Monitoring Plan
• Verification of CDM Projects
• Final remarks
• More information and contact details

3
Introduction to DOEs

• Kyoto Protocol requires an independent third
  party to be involved in CDM project cycle
• Independent party is referred to as a Designated
  Operational Entity (DOE)
• DOE is legal entity with two basic functions
• Validation and subsequently request for
  registration of a proposed CDM project activity
• Verification and certification of the emission
  reductions of a registered CDM project activity
• Core task of a DOE is to protect the
  environmental integrity of the CDM and facilitate
  the trade in emission reductions by providing
  confidence

4
Brief introduction to SGS

• SGS is the worlds largest inspection,
  verification and testing company, providing
  services in over 140 countries world-wide
• In house expertise metering, calibration,
  laboratories, industrial inspection,
  environmental impact assessments, air and water
  quality, land contamination, ISO 14001
  certification, EMAS Verification..
• SGS Climate Change Programme
• Started in 1997 with sinks projects, since
  then, expanded into all GHG sectors / all gases
• Validated more than 30 potential JI and CDM
  projects (preliminary) verification of around 10
  potential CDM and voluntary projects

5
Input of DOE in the CDM project cycle
Project idea
Project Developer
Write Project Design Document
DOE
Validation / registration
Project Developer
Implementation/ Monitoring
DOE
Verification / certification
CER
6
Validation of CDM projects

• Projects are required to use a methodology that
  is approved by the CDM Executive Board to
  establish the project baseline, additionality and
  monitoring methodology
• The purpose of a validation is to have the DOE
  assess the project design, in particular the use
  of the approved methodology and the projects
  compliance against the requirements of the
  Marrakech Accords and the host party
• Main criteria are
• Completeness of documentation
• Host country acceptance and host country
  eligibility
• Applicability and correct use of the approved
  methodology
• The project reduces emissions below those in
  absence of the project
• Environmental and social performance
• Development of an effective monitoring plan
• National and international stakeholder
  consultation

7
Monitoring Plan

• During implementation of the project, the project
  manager will have to monitor the GHG emissions
• Monitoring plan must show how the data are going
  to be collected
• During validation
• The parameters used to predict the emissions will
  be cross-checked against the monitoring plan to
  ensure that those parameters which have a very
  strong influence on the reported results will be
  collected with the highest accuracy.
• The assessment team will be particularly
  interested to see how data will be collected and
  how quality of data will be assured.
• The monitoring plan must also cover environmental
  and social impacts as required by any Social /
  Environmental Impact Assessment and any other
  regulatory requirements

8
Monitoring Plan (cont)

• During project implementation
• The project managers must collect data exactly as
  specified in the monitoring plan
• The Verifier will verify that the Monitoring Plan
  has been implemented as specified in the
  validated Project Design Document
• Changes to the Monitoring Plan need to be
  approved by a Validating Operational Entity

9
Verification of CDM projects

• Verification is the periodic independent review
  of the monitored project emissions during the
  implementation period
• By comparing these with the baseline emissions,
  it results in an opinion of the number of
  emission reductions
• The Verifier certifies in writing the number of
  avoided emissions and submits a Certification
  Report.
• At this stage a high level of certainty is
  required

10
Final remarks

• DOE has to be independent of the project, this
  means they can not consult on the development of
  the project or the writing of the project design
  document
• Except for small scale projects, the DOE
  performing the validation must be different from
  the DOE performing the verification in order to
  ensure there is no conflict of interest

11
More information and contact details

• UNFCCC website
• CDM project cycle http//cdm.unfccc.int/pac/howt
  o
• Role of DOE http//cdm.unfccc.int/DOE/
• Contact details SGS
• Marco van der Linden
• Tel [phone]
• Email Marco.van.der.linden_at_sgs.com
• Corporate Website www.sgs.com/climatechange